New deals and project delivery fuels Caddick Group’s growth

Caddick Group reports rise in profits and turnover following a successful year of major deals and milestones achieved.

L-R: Paul Dodsworth, Managing Director of Caddick Construction; Johnny Caddick, Caddick Group; Myles Hartley, MD of Caddick Developments and Group ESG lead | BTR News
L-R: Paul Dodsworth, Managing Director of Caddick Construction; Johnny Caddick, Caddick Group; Myles Hartley, MD of Caddick Developments and Group ESG lead.

Yorkshire headquartered Caddick Group has completed major deals and has achieved a raft of successful delivery milestones, contributing to a rise in profits and turnover for the company.

The Group – which includes businesses such as Moda Living, Caddick Developments and Caddick Construction – is one of the UK’s leading integrated property businesses which has interests throughout the UK.

Compared to the previous financial year, turnover for the Group rose 28% with profits increasing by 41.8% after a record year of delivery. Group turnover for the year ending August 2022 stood at £492m, with pre-tax profits up to £58m. The continued strong performance reflects an increasing geographical reach across the UK and investment in a healthy pipeline of future opportunities.

Caddick Group continues to increase its long-term development pipeline, remaining focused on a dual property strategy of Living and Industrial/Logistics. This is driven by Moda Living, which delivers and operates institutional grade rental homes across the Build to Rent, single-family rental, student accommodation and co-living markets; Caddick Developments, the largest privately owned multi sector property developers delivering high quality commercial spaces across the UK; and Caddick Construction, which boasts over 40 years’ experience delivering new build, refurbishment and civil construction projects across a range of market sectors. 

The Living and Industrial/Logistics sectors are underpinned by the strong fundamentals of robust occupational demand and limited supply, with investor and occupier appetite in these sectors remaining strong. In this context, the Group has recently announced the funding and commencement of several new schemes.  

“Our focus on Living and logistics has proven its resilience and strength through recent years, putting Caddick Group in a strong financial position. Our work to secure a market leading pipeline of opportunities across our sectors has given us the headroom to invest for our future and secure a bright outlook for the Group.

“We have a national geographical reach, with projects now on site in the North of England, Scotland, the Midlands and the South. As a privately owned business, we have the flexibility to take decisions quickly and react at speed to evolving market conditions. Our expanding team has worked tirelessly to ensure we are in rude health, giving us the confidence to invest in our future, which is reflected in an expanding pipeline with a GDV approaching £10bn.”

Johnny Caddick, Caddick Group

Caddick Group has also invested heavily in its Environmental, Social and Governance (ESG) initiatives. The company has completed its new, ambitious ESG strategy – Places for Life. The strategy sets out the company’s vision that the Group will lead in creating the best places in the country, redefining what it means to support people, communities and the environment by 2025. 

“We have always been focused on the responsibility we have as a business to bring about long-term positive impacts in the communities where the Group is active, but in recent years we have spent considerable time and effort codifying this and ensuring we are leading the way. Launching our Places for Life strategy sets out our bold ambitions and is a statement of intent about our future.

“We’re taking decisions now to embed these ambitions into every aspect of our business to ensure that we continue to deliver on our core strategies in sustainable, resilient and market-leading ways.”

Myles Hartley, MD of Caddick Developments and Group ESG lead

On the Living side of the Group’s business, Moda Living delivered three new Build to Rent neighbourhoods during the year. This included the 515-home Moda, New York Square development at the Group’s SOYO site in the heart of Leeds’ cultural quarter; Moda, The Lexington in Liverpool, a 325-home landmark development on the waterfront which reached full occupancy in December 2022 and has delivered over £76m of social value; and Moda, The Mercian in Birmingham – the Midlands’ tallest residential building comprising 487 homes across 42 storeys. The business also continued to build out its 24,000-home pipeline, with £1.5bn of projects live on site during the period. 

The construction business has seen a 30% growth in its core markets, including residential and industrial alongside other projects in the office, healthcare and process related sectors. The business welcomed Paul Dodsworth as its new Construction Group Managing Director in August 2022, followed by a host of senior hires and promotions. This significant investment supports the Group’s planned and continued sustainable growth.     

“We’ve had a really strong year, one in which we’ve grown our portfolio, our team and our capabilities. There have undoubtedly been some challenges over the period, but our resilience and agility have enabled us to respond quickly to changes in the market while supporting our valued clients and supply-chain partners along the way.

“I joined Caddick Construction last summer and I am very proud to lead a business that has worked tirelessly to earn its strong reputation in the industry. Our strategy is fully focussed on continuing our sustainable growth; building a diverse work pipeline across our core sectors and ensuring we have a balanced portfolio of public and private sector projects. Underpinning this is our continued investment in our teams, our expertise and the exceptional capabilities of our in-house services, Caddick Civil Engineering and CCL Facades.”

Paul Dodsworth, Managing Director, Caddick Construction

Caddick’s integrated offer gives complete control over a development – from the initial site identification and discussion with landowners, securing planning permission and construction, to handover.

Formed over 40 years ago and with offices in Leeds, Manchester, Birmingham and London, Caddick Group’s annual results 2021/22 highlight the long-term investment in the Group and its significant successes. Group turnover and profit before tax have risen significantly over the past five years, with the past four years seeing successive years of growth. Looking ahead to a strong future, the Group has £9.8bn worth of assets in its development pipeline.